Litigation Release No. 21051 / May 20, 2009

Securities and Exchange Commission v. Zachariah P. Zachariah, et al., Civil Action No. 08-60698-CIV-JOHNSON

Federal Court Denies Defendant Dr. Zachariah P. Zachariah's Motion for Partial Summary Judgment to Dismiss Commission's Claim Relating to His Trading of CSC Stock

The Securities and Exchange Commission announced that on May 14, 2009, the Honorable Linnea R. Johnson, United States Magistrate Judge for the Southern District of Florida, denied Defendant Dr. Zachariah P. Zachariah's (Zachariah) motion for partial summary judgment to dismiss the Commission's claims relating to his trading of Correctional Services Corporation (CSC) shares. The Court considered the parties' arguments and the evidence presented and determined that there was "ample evidence of disputed issues of material fact that require a full trial to determine."

On May 12, 2008, the Commission filed a civil action against Zachariah and others alleging that Zachariah violated Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934 by engaging in illegal insider trading. The Commission's case concerns insider trading in the shares of CSC and IVAX Corp. Zachariah did not move for summary judgment regarding the Commission's claims relating to his trading of IVAX shares. The trial is scheduled for November 9, 2009.

For further information, see LR-20564 (May 12, 2008)